IG vs IGBH
IG vs IGBH
Principal Investment Grade Corporate ETF vs iShares Interest Rate Hedged Long-Term Corporate Bond ETF
Quick Verdict
IGBH has a lower expense ratio. IGBH delivered stronger 1-year returns. IG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | IG | IGBH | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.14% | |
| AUM | $198M | $203M | |
| Dividend Yield | 5.07% | 5.68% | |
| Holdings | 248 | 4,130 | |
| YTD Return | -1.54% | +1.43% | |
| 1Y Return | +0.84% | +5.80% | |
| 3Y Return (annualized) | +4.56% | +7.55% | |
| 5Y Return (annualized) | -0.69% | +5.34% | |
| Volatility (annualized) | 8.0% | 7.5% | |
| Max Drawdown | -23.8% | -38.9% | |
| Fund Family | Principal Funds | iShares by BlackRock (US) | |
| Category | Fixed Income | Fixed Income | |
| Inception | Apr 18, 2018 | Jul 22, 2015 |
IG vs IGBH Performance
Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds and iShares Interest Rate Hedged Long-Term Corporate Bond ETF (IGBH) is a ETF from iShares by BlackRock (US). Over the past year IG returned +0.84% while IGBH returned +5.80%. Year to date, IG is down 1.54% versus a gain of 1.43% for IGBH.
Over three years, IG compounded at +4.56% per year against +7.55% for IGBH; over five years the annualized figures are -0.69% and +5.34% respectively. Across the full 8-year window we track, IGBH has the edge at +2.85% annualized vs +0.59%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IG has been the more volatile fund, with annualized monthly volatility of 8.0% compared with 7.5% for IGBH. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -23.8% for IG and -38.9% for IGBH. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IG charges 0.19% per year while IGBH charges 0.14%. On a $10,000 position that is $19 vs $14 annually, a gap of $5 per year that compounds over a long holding period. On income, IG currently yields 5.07% against 5.68% for IGBH.
Holdings Overlap
IG and IGBH share 0 holdings out of 221 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IG or IGBH?
IG has an expense ratio of 0.19% while IGBH charges 0.14%. IGBH is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, IG or IGBH?
Over the past year IG returned +0.84% vs +5.80% for IGBH, so IGBH leads on 1-year performance. Over the longest common window we track (8 years), IG annualized +0.59% vs +2.85% for IGBH. Past performance does not guarantee future results.
Which is riskier, IG or IGBH?
IG has been the more volatile fund at 8.0% annualized versus 7.5% for IGBH. Worst drawdown: IG -23.8% vs IGBH -38.9%.
Should I hold both IG and IGBH?
IG and IGBH have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IG and IGBH?
IG and IGBH share 0 common holdings with a 0.0% weight overlap. Combined, they hold 221 unique securities.
Which pays a higher dividend, IG or IGBH?
IG yields 5.07% while IGBH yields 5.68%, so IGBH currently pays the higher dividend yield.
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